ISLAMABAD: Pakistan may be open to lowering the high import taxes charged on smartphones, a move that could reduce device prices for millions of users, after a legislator campaigning for reform said on Tuesday the Federal Board of Revenue (FBR) would not oppose a reduction if the ministry of finance’s Tax Policy Office recommended one.
Imported phones in Pakistan are subject to heavy duties, sales tax and registration fees that can add hundreds of dollars to the final price, with high-end devices often costing significantly more than their retail value abroad. The government has long argued the levy is designed to regulate imports and curb grey-market phones, but critics say the policy restricts digital access, education and e-commerce for ordinary citizens.
Member of Parliament Kasim Gilani has been publicly challenging the tax regime for weeks.
“Chairman FBR has stated that if the Tax Policy Office of the Finance Ministry recommends a reduction in PTA tax, FBR will have no objection to rationalizing the tax percentage. A major development for smartphone users across Pakistan,” Gilani posted on X.
The government, Pakistan Telecommunication Authority (PTA) and FBR have not yet issued a public confirmation of Gilani’s X post.
The so-called PTA tax, widely referred to by consumers using the name of the national telecom regulator, is in practice a series of federal charges collected on imported devices, particularly those brought into Pakistan from abroad or by returning expatriates. Registration fees for users who activate foreign-purchased phones locally can also significantly raise costs.
Calls for reform have grown in recent months alongside the wider debate on digital inclusion. Pakistan’s population is overwhelmingly young, with over 60 percent under the age of 30, and smartphones are now central to banking, online education and gig-economy work. Reducing the levy could expand access to Internet-enabled devices, but it could also reduce revenue unless phased or redesigned.
No formal reduction has been announced yet, and any change would require approval from the ministry of finance and relevant tax bodies. However, Gilani’s statement suggests a potential shift if policymakers conclude that lower duties could boost adoption, compliance and long-term digital growth.
